Maple Finance has joined a growing list of crypto lending platforms facing liquidity issues after announcing on June 21 that its pools may be running out of cash.
DeFi protocol for institutional borrowers and lenders published Refresh saying that “lenders must wait for repayment by the borrower”.
Maple Finance said current market conditions have increased the demand for liquidity among lenders and borrowers. He added that this demand could rise as weeks increase.
A Maple spokesperson said the platform will survive all the withdrawals in the coming weeks. Due to the structure of the protocol, lenders can only withdraw cash if they have it. This means that the platform does not need to limit or suspend withdrawals.
Maple also said that its lenders will continue to receive rewards in the form of MPL (native token) regardless of the waiting time on the part of borrowers.
Meanwhile, Maple explained how to reduce risks and gain access to borrowers. List of his borrowers public. It currently has 66 active loans worth $1.5 billion.
Maple denies the effects of Celsius temperature, others
Maple has assured its creditors that it is not directly related to any other crypto firm facing liquidity issues.
Cryptocurrency lender disclosed in click update that the Celsius Network does not borrow from its platform; instead, the struggling firm is the only lender in the pool that it manages.
Celsius borrows capital from its own balance sheet and does not borrow from Maple.
They are the only lender in the $20 million pool they manage. There are no external contributors and the pool has no interdependencies with other pools.
All this information is in the Maple web app.
— Maple (@maplefinance) June 13, 2022
Regarding Three Arrow Capitals, Maple says it has determined that
Most borrowers are market/delta neutral and trade market volatility, which means we believe they are unlikely to have a direct impact on 3AC.
Maple acknowledges that its USDC orthogonal pool provided Babel Finance, which has temporarily suspended withdrawals, a $10 million loan.
Orthogonal acknowledges that Babel received a $10 million loan from the Orthogonal USDC pool on Maple.
Orthogonal has been in daily contact with Babel’s management since Babel stopped withdrawing funds and has focused on protecting the interests of creditors.
— Maple (@maplefinance) June 21, 2022
However, he says he has contacted Babel management and will provide new updates as they come in.
Credit : cryptoslate.com